The stock market is at a critical juncture as bears have one last level to defend before bulls take full control, according to BTIG Research. Pessimistic investors are facing a key level that, if breached, could signal a shift in market sentiment. Bulls are currently dominating with the S&P 500 above its downtrend and 50-day moving average, leaving bears with only one number to keep the index below: a 76.4% retracement of the recent decline, around 5,191.
“Bulls clearly have the ball here,” said Jonathan Krinsky, BTIG’s chief market technician, in a note to clients. This development comes as Dutch Bros, a popular coffee chain, is experiencing a surge in customers and share price. The company reported a 10% increase in same-store sales, the largest rise since the fourth quarter of 2021. CEO Christine Barone attributed the growth to a combination of ticket expansion and increased foot traffic.
In contrast, coffee giant Starbucks recently reported a 7% drop in transactions, causing its stock to plummet. Dutch Bros also raised its full-year guidance and announced a partnership with restaurant technology firm Olo to introduce mobile ordering to its app. Olo’s shares are also on the rise following the news.
Meanwhile, after-hours trading saw Reddit’s stock soar over 12% after beating earnings expectations in its first report since going public. Lyft also saw a 6% increase after surpassing analysts’ estimates for first-quarter sales and earnings. However, Sonos experienced a more than 3% decline after reporting a wider loss than anticipated.
As the market awaits further developments, stock futures for the Dow, S&P 500, and Nasdaq 100 remain relatively unchanged, signaling a cautious approach among investors. Stay tuned for more updates on these market movements.
